A straightforward approach to earning interest on your savings with BMO Alto CD.
BMO Alto's CDs are the perfect option for those seeking simplicity and high APYs. Online-only banks like BMO Alto have lower overhead costs, which enables them to offer CDs with higher rates. To determine if BMO Alto's CDs are suitable for your savings, consider the following information.
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How do the BMO Alto CDs work?
BMO Alto provides competitive CD rates with terms ranging from six months to five years, and does not charge any fees, including monthly maintenance fees.
How to fund your CD
You can either link an external account to BMO Alto Online Banking and transfer funds via ACH, or you can initiate an ACH transfer from your external bank account using your BMO Alto CD routing and account numbers.
Access to your cash
BMO Alto's CDs are traditional, meaning you can't withdraw any of your money before the CD's term ends without paying a penalty.
When your CD reaches maturity, you can withdraw your funds without any fees during a 10-day grace period. You can then transfer the money to either another BMO Alto account or an external account. If you do not act, BMO Alto will automatically renew to a new CD with the same term length.
Fees and penalties
BMO Alto does not charge any fees on its CDs, but it imposes an early withdrawal penalty if you withdraw money from your account before the CD matures. The penalty for CDs with terms of 11 months or less is 90 days' worth of interest, while for CDs with terms of 12 months or more, the cost is 180 days' worth of interest.
Are the BMO Alto CDs worth it?
If you're looking for a high rate on your savings, the BMO Alto CDs are a competitive option with no fees. However, keep in mind that BMO Alto is an online-only bank, so you won't have access to a physical location for any questions or concerns.
Unlike many banks, BMO Alto does not provide specialty CDs, such as no-penalty or add-on CDs, which offer more flexibility in managing funds. However, these CDs could still be beneficial if you are looking for a high rate of return on your savings.
Alternatives to BMO Alto
Synchrony Bank offers a range of CD options, including standard, Bump-Up, No-Penalty, and IRA CDs, with term lengths ranging from three months to five years and high APYs. Customers can access customer service seven days a week via phone or online chat, and 24/7 through the app, without any physical branch locations.
If you prefer banking with a larger institution, Marcus by Goldman Sachs offers CDs with terms ranging from six months to six years, and competitive rates. The minimum deposit requirement is $500, and there are no monthly maintenance fees. Their U.S.-based contact center is available 24/7 for live customer support via phone or online chat.
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